MRCB sells Kia Peng land for RM323m to Socso

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KUALA LUMPUR: Malaysian Resources Corporation Bhd (MRCB) is selling a piece of prime lan along Jalan Kia Peng here to the Social Security Organisation (Socso) for RM323mil, which could see it recording a profit of RM56mil.

The infrastrcuture-property company announced on Monday  its unit  Legasi Azam Sdn Bhd had inked a deal to sell the freehold land measuring 1.866 acres to Soco, or also known as Pertubuhan Keselamatan Social (Perkeso).

MRCB said the net book value was RM269mil based on the audited accounts for the financial year ended Dec 31, 2016.

Its market value was RM323mil based on the valuation ascribed by IM Global Property Consultants on Feb 19, 2018. The original cost of investment was RM267mil while the date of purchase was April 7, 2015.

“The proposed disposal is expected to realise an estimated after-tax gain of approximately RM30mil to the MRCB Group which is expected to improve MRCB Group’s consolidated earnings per share for the financial year ending Dec 31, 2018,” it said.

MRCB said the proceeds from the sale would be used for the group's  working capital (including defraying expenses in connection with the proposed disposal) and property development activities within 12 months from receiving the purchase price.